Aug 2026· International Journal of Creative and Open Research in Engineering and Management· 0 citations
Abstract
Foreign exchange risk has become one of the most significant financial challenges for organizations involved in international trade, foreign investment, and cross-border financial transactions. Exchange rate fluctuations directly affect import costs, export earnings, profitability, cash flows, and overall business performance. This study examines the emerging trends in managing foreign exchange risk in India by analysing various types of currency risks, modern hedging techniques, derivative instruments, technological innovations, and regulatory developments. A descriptive research design was adopted using both primary and secondary data collected from 100 respondents through a structured questionnaire. For analytical purposes, Multiple Regression Analysis was applied to examine the influence of hedging strategies, technological adoption, and regulatory support on effective foreign exchange risk management. The findings indicate that forward contracts, currency futures, options, swaps, artificial intelligence, digital treasury management systems, fintech solutions, and regulatory initiatives significantly strengthen foreign exchange risk management. The study concludes that technology-driven financial solutions and strategic risk management practices enhance organizational resilience, financial stability, and global competitiveness.
In the context of accelerating globalisation and currency volatility, effective foreign exchange (FX)
risk management has become essential for business sustainability and performance. This study
investigates the relationship between FX risk mitigation strategies and key business performance
indicators, focusing on firms operating in four emerging African economies—Nigeria, Ghana,
Kenya, and South Africa. Using a mixed-methods approach, the research integrates survey data
from 108 financial officers and interviews with 20 treasury executives to assess the adoption and
impact of hedging tools, forecasting technologies, and exposure management practices. The
findings reveal that firms employing structured FX hedging instruments and real-time forecasting
tools report significantly higher financial stability, stronger returns on assets, and reduced
earnings volatility. Conversely, firms with unhedged currency exposure, particularly small and
medium-sized enterprises (SMEs), experienced performance deterioration due to depreciation
risks and foreign procurement costs. Regression analysis confirms a positive correlation between
FX risk management practices and financial performance, with technology adoption acting as a
performance-enhancing catalyst. The study concludes that institutionalising FX policies and
expanding access to hedging for SMEs are critical for growth and resilience. These insights offer
practical implications for corporate treasuries, policy makers, and financial service providers
navigating volatile currency environments.
G. O. Aina· Journal of Accounting and Fi...· 0 citations
Currency fluctuations create significant financial risk for export-oriented
companies because changes in exchange rates can affect export revenues,
profitability, cash flows, pricing, and competitiveness. This study
examines currency hedging strategies used by Kireeti Group, Hyderabad,
to manage foreign exchange risk. It evaluates the use and effectiveness
of forward contracts, options, futures, swaps, and other hedging
approaches. The study also examines factors influencing hedging
decisions, major challenges, and the contribution of treasury
management to financial stability. Primary data were collected from 100
respondents through a structured questionnaire. The findings indicate
that forward contracts are most preferred and existing hedging strategies
are generally effective.
Keywords: Currency Hedging, Foreign Exchange Risk, Export
Companies, Forward Contracts, Kireeti Group
Narapaka Poojitha, Dharmavarpu Lakshmi Lavanya· International Journal of Cre...· 0 citations
The foreign exchange market is the world's largest financial market and plays an important role in international trade, investment, and economic growth. This study examines the Indian Rupee–US Dollar exchange rate and the factors influencing its movements. Inflation, interest rates, foreign investment, foreign exchange reserves, trade balances, monetary policies, and global economic conditions are considered important determinants. The study also examines the effects of exchange-rate changes on imports, exports, investment, business profitability, and financial stability. Primary data were collected from 100 respondents and analyzed through percentage analysis. The findings emphasize effective exchange-rate management, risk management, technological development, and stable monetary policies.
Keywords: Foreign Exchange Market, INR, USD, Exchange Rate, Foreign Investment
C. P. Pavan Kumar, D. Tharangini· International Journal of Cre...· 0 citations
Nigerian investors diversifying into international markets face a significant obstacle in the form
of foreign exchange risk, but there is a startling lack of empirical data on its effects. This study
closes this gap by carefully examining the impact of Naira volatility (NGN/USD, NGN/GBP, and
NGN/EUR) on the risk-adjusted performance of international portfolios. We use comparative
hedging simulations and multivariate regression using monthly data from 2010–2023, which
includes Nigeria’s 2016 capital liberalisation, several currency crises, and the 2023 Naira float.
Key findings show that oil price fluctuations and inflation discrepancies increase losses, and that
a 1% increase in forex volatility lowers real risk-adjusted returns (Sortino ratio) by 0.62% (*p*
< 0.001). Importantly, despite transaction costs, forward contracts through Nigeria's Investors' &
Exporters' window prove to be the best hedge, providing net returns during crises that are 10.8
percentage points higher than unhedged portfolios.
I. Areghan· Journal of Accounting and Fi...· 0 citations
International Financial Management is important for Indian firms
operating across borders, particularly with Gulf countries that maintain
strong trade, investment, and remittance links with India. This study
analyzes international financial management practices used by
organizations with reference to the Gulf region, focusing on foreign
exchange management, financing choices, financial risks, digital
banking, and effectiveness. The study uses responses from 100
participants and applies percentage analysis to interpret selected
financial dimensions. Findings indicate that respondents recognize
foreign exchange management as important, identify exchange rate risk
as a concern, and view digital banking positively. The study recommends
risk management, technology adoption, and financial planning.
Keywords: International Financial Management, Foreign Exchange
Management, Gulf Countries, Financial Risk, Digital Banking
Charnapally Sai Pavan, Inaganti Bade Saheb· International Journal of Cre...· 0 citations
Exchange rate volatility is an important macroeconomic issue that influences international trade, investment, inflation, financial stability, and sustainable economic growth. The present study examines the volatility and movement of the Indian Rupee against selected major foreign currencies during 2025 and assesses its implications for economic stability and sustainable development in India. The study focuses on the US Dollar, Euro, Chinese Yuan, Japanese Yen, and UAE Dirham, considering their importance in India's international trade and financial transactions. A descriptive and analytical research design was adopted using secondary data comprising daily exchange rate observations for the period from January to December 2025. The data were analyzed using descriptive statistical measures, including mean, minimum, maximum, standard deviation, variance, skewness, and kurtosis. Case processing and normality tests were also conducted to assess the completeness and distributional characteristics of the exchange rate data.
The findings indicate an overall upward movement in most selected exchange rates against the Indian Rupee during the study period, reflecting depreciation of the Rupee. The extent of volatility varied across currencies and months. The US Dollar and Euro exhibited comparatively higher fluctuations, while the Chinese Yuan and Japanese Yen showed relatively lower or moderate volatility. The UAE Dirham recorded moderate fluctuations with an overall upward trend. Variations in skewness and kurtosis indicate asymmetric distributions and occasional unusual movements. The Kolmogorov-Smirnov and Shapiro-Wilk tests confirmed that the exchange rate series were not normally distributed, indicating irregular patterns of currency movements. The study highlights the importance of effective exchange rate monitoring, currency-risk management, hedging practices, adequate foreign exchange reserves, and sound macroeconomic policies. Strengthening these measures can help reduce the adverse effects of exchange rate volatility and contribute to greater economic stability and sustainable economic growth in India.
G. Indhumathi· International Journal of Lat...· 0 citations
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